Μake us preferred on Google The surge in global oil prices above $100 a barrel is raising concerns in Greece over higher fuel and heating costs for households and businesses, as the government monitors the impact of the energy rally on the domestic market.
The average price of diesel fuel remains above €2 per liter despite a government subsidy of 10 cents per liter, including VAT, and a further 5-cent-per-liter discount from refineries. Meanwhile, heating oil is expected to enter the market at particularly high prices.
The Ministry of National Economy and Finance is monitoring the market daily and has left open the possibility of additional measures if high energy prices persist.
Based on current prices, if heating oil were to go on sale now, its nationwide average price would exceed €1.90 per liter. That compares with €1.10 per liter when the previous heating season began in October 2025 and €1.80 per liter when the season ended in April.
Oil prices put pressure on fuel costs
Brent crude has risen by about 25% since the beginning of August, while its increase since the start of the year has exceeded 60%.
Following the outbreak of the war in the Middle East on February 28, 2026, Brent reached as high as $126.41 a barrel on April 30. On Wednesday, it rose above $100 for the third time this year.
Greek officials are closely tracking both international oil prices and how quickly increases are being passed on to consumers and businesses in the domestic market.
If necessary, the government is prepared to introduce additional support measures for households, with interventions for both diesel and heating costs under consideration.
Diesel subsidy could be extended
One of the options under consideration is extending the subsidy for diesel fuel into October, a scenario described as particularly likely.
Omiros Tsapalos, spokesperson for the Ministry of National Economy and Finance, said the current subsidy is in effect through the end of September and is funded both by the refineries and the state budget.
“There is a margin of around €130 million that we have set aside from the 2025 surplus, so if it is deemed necessary, the specific subsidy can be extended into October,” Tsapalos told Greek television station MEGA.
“We are necessarily going month by month,” he said.
Heating oil set to launch at higher prices
Heating oil sales are scheduled to begin on October 15, 2026. Unless international prices fall, households could enter the winter facing significantly higher energy costs.
Market representatives are calling for greater support for households and have proposed that any heating-oil subsidy be provided directly at the pump.
The existing heating allowance ranges from €100 to €800, while it can reach €1,200 in areas with particularly cold weather.
Greece’s plan under the Social Climate Fund, which has been approved by the European Commission, also provides for an additional €100 per year in heating allowance for approximately 780,000 beneficiaries.
Under the timetable for the measures, the increase is scheduled to apply from 2027 through 2032, with the aim of offsetting part of the additional cost created by higher prices for heating oil, natural gas and liquefied petroleum gas.
